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Question: given the following information for silicon tech find its wacc...

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Given the following information for Silicon Tech, find its WACC. Assume the company s tax rate is 25 percent. Debt: 30,000, 5.5 percent coupon bonds outstanding, $1,000 par value, 10 years to maturity, selling for 98 percent of par; the bonds make semiannual coupon payments. Common stock: 400,000 shares outstanding, selling for $40 per share; the beta is 1.60. Market: 7.0 percent market risk premium and 4.5 percent risk-free rate.

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